Digital assets are taking another step into mainstream finance as online mortgage lender Better and cryptocurrency exchange Coinbase announced a new partnership that will allow homebuyers to use their crypto holdings when applying for a mortgage.
The companies unveiled what they describe as the first crypto-backed conventional mortgage program, allowing eligible borrowers to count cryptocurrency assets toward mortgage
qualification without liquidating their investments, reports Yahoo Finance.Traditionally, homebuyers holding significant wealth in digital currencies have been required to convert those assets into cash before lenders would consider them for underwriting. Under the new program, borrowers can link their Coinbase accounts to Better’s mortgage platform, allowing the lender to verify and evaluate their crypto holdings directly. The
move could be particularly appealing to investors who want to maintain exposure to assets such as Bitcoin while pursuing homeownership. By avoiding the need to sell cryptocurrency, borrowers may also sidestep potential tax consequences and preserve future upside if asset values increase.The partnership reflects growing efforts by financial institutions to integrate digital assets into traditional banking and lending services as cryptocurrency adoption continues to expand across the United States.
However, the program also arrives amid ongoing concerns about the volatility of cryptocurrencies. Because digital assets can experience significant price swings, lenders will likely apply risk-management measures when determining the value attributable to a borrower’s holdings.
For Coinbase, the agreement represents another step toward broadening the real-world utility
of cryptocurrency beyond trading and investing. For Better, the partnership could help attract a new generation of tech-savvy and high-net-worth borrowers whose wealth is increasingly tied to digital assets.RELATED CONTENT: Kevin Durant Increases Role With Cryptocurrency Company Coinbase